1. Mr Speaker Sir, I thank Mr Louis Chua and Associate Professor Jamus Lim for their interest and suggestions in strengthening Singapore’s equities market.  We welcome such feedback as part of the on-going efforts to make our equities market more competitive.  

2. I am pleased to report that we are making good progress with our review and have achieved some initial success. 

• The average daily traded value of securities on SGX grew more than 20% year-on-year to almost S$1.8 billion in November 2025. The average daily traded value of securities in 2025 was the highest since 2010. 

• Recently, the number of Singapore-listed stocks with at least S$1 million in average daily trading turnover has risen to 100. This is an increase of 40% compared to August 2024 when we formed the Review Group. 

• IPO activity rebounded significantly last year, with more than S$2.4 billion in total funds raised, which is the highest level since 2019. The total market value of listed companies on SGX also crossed the S$1 trillion mark. Sir, the growth has benefited many listed companies, many investors and these companies include both the large caps and also the small and mid-caps.

• Despite global uncertainties, the Straits Times Index delivered strong returns last year with over 28% total returns, and over five years, STI’s total returns exceeded 100% in Singapore dollars terms, outperforming many regional markets. 

3. As global investors rebalance and diversify across Asia, Singapore’s reputation as a safe, trusted financial centre — with a strong and stable Singapore dollar — has drawn growing interest.   

4. I hope this positive momentum continues, but we know markets have ups and downs. Our focus therefore must be to continue strengthening the competitiveness and attractiveness of our ecosystem. 

5. We have worked closely with the industry to co-create solutions and implement a holistic package that strengthens both demand and supply, as well as enhancing greater connectivity that supports efficient trading. 

6. Over the past 18 months, the Equities Market Review Group engaged widely with brokers, banks, asset managers, listed companies, prospective issuers, research providers, and industry bodies, and this process helped us move beyond making individual tweaks towards a comprehensive set of mutually reinforcing moves, to get the momentum of the flywheel going.  

7. Sir, there are three guiding principles that will continue to anchor our work.

• First, implementation is key. We will focus on effective and timely implementation, to translate policy ideas into market outcomes. To support this important area of work, we have established an Equity Market Implementation Committee co-chaired by MAS and SGX. 

o Some of the measures have already been rolled out.  For instance, we have allocated S$3.95 billion across 9 asset managers under our Equity Market Development Programme (or EQDP) to develop our fund management industry and to increase investor participation in our market.  

o Other initiatives are on track and will be implemented over the course of the year as we modernise market infrastructure and launch new market connectivity initiatives.

• Second, innovation in policy requires taking calculated risks. We adopted an approach of allowing for more risk-taking in the equities market review, and with support from Singaporeans and Members of this House, the Government will do likewise for other areas too.  

• As we push boundaries and take bold steps to try new ideas, we will put in place guardrails where necessary to protect against downside risks.  We will devote more resources into public and investor education, working with partners like the SGX Academy and the Securities Investors Association (Singapore), so that stakeholders understand that while taking more risks could yield higher investment returns, they are also prepared to face greater market volatility.  This trade-off is relevant when we decide on our personal and family investments, it is also applicable when we decide on the level of risks we want to collectively take as a country.  

o When we shift towards a more disclosure-based regime with regulation that is more focused and facilitative, we will continue to seek high quality listings, and provide adequate and timely information for investors to make their decisions. 

o Key stakeholders in the ecosystem must also exercise their respective areas of expertise and responsibility – IPO professionals and research analysts have to uphold high standards of due diligence and analysis, to support investors in making informed decisions. 

o MAS will take steps to strengthen investor confidence, such as encouraging transparency and shareholder engagements through initiatives under the “Value Unlock” programme, while enhancing investor protection mechanisms, especially for retail investors, such as strengthening their options for recourse against misconduct. I take Mr Louis Chua’s point that some requirements may have to be mandatory and we are certainly open to looking at these examples, but I hope Mr Chua will agree with me that not everything that can add value to the company needs to be mandated because companies themselves would have strong commercial interest to want to make sure they can increase their market value.

o To maintain trust and confidence in our markets, MAS and the relevant authorities in Singapore will continue to work closely on robust investigation, market surveillance and timely enforcement against breaches of disclosure requirements and market misconduct. 

o We have also made decisive moves to enhance international connectivity. The SGX–Nasdaq Global Listing Board, when implemented later this year, will enable eligible companies to simultaneously list on both exchanges with one set of prospectus. This can help support their growth plans, widen their investor base, and enhance liquidity across time zones. 

• Third, improving competitiveness is a never-ending journey. It is like a never-ending marathon that you just have to keep running. We will continue to listen, adapt, and raise our game in partnership with the industry. I certainly also welcome feedback and suggestions from Mr Chua, from Associate Professor Lim, and their colleagues from the Workers’ Party.  

o Although our efforts have yielded some initial success, we cannot stand still and rest on our laurels because the competition for global capital is intense and fast-evolving.  

o We must continue to play to our strengths and we must continue to innovate to stay ahead, or we will risk falling behind and being over-taken.  It is like the Chinese saying, 逆水行舟不进则退.  

8. Sir, our strategy is to make Singapore’s market more attractive on its own merits. So that capital flows here because the opportunities are attractive and our ecosystem as a whole is strong. This philosophy underpins our different measures. We are not trying to go for a silver bullet that can, on its own, solve all the problems. There is no magic pill. We are also not trying to “force” outcomes through quotas or administrative allocation. We are building capabilities — in fund management, in listed companies’ ability to enhance shareholder value, to engage investors, by investing in market infrastructure — so that investors and issuers choose Singapore because they are convinced this makes commercial sense and this has longer-term strategic value for them. 

9. Our goal is to build an equities market:

• where companies sharpen their attention on shareholder value creation, communicate their strategies clearly, optimise capital allocation and thus deliver good shareholder returns; Associate Professor Lim is right that we also need to look at how the market can facilitate companies to grow. But I hope Associate Professor Lim will agree with me that if you do not have good shareholder returns, you will not be able to achieve that outcome. So the two are not mutually exclusive, they go hand in hand;

• We also want an equities market where research coverage is broader and more insightful; where market makers operate with clarity and confidence; and 

• where trading and post‑trade are efficient and user‑friendly. 

That is how our market will earn capital and participation in a sustainable manner.

10.  Mr Speaker, developing a vibrant equities market is not a one‑off campaign. It is a multi‑year effort that requires discipline, willingness to innovate sensibly, and committed partnership among government, regulators, exchanges, intermediaries, investors, and listed companies. We have laid the foundations and set in motion a comprehensive programme.  

11. If we keep at this work together in close partnership between Government and industry, and with the right incentives and a clear focus on quality and sustainability, I am confident that Singapore’s equities market will grow in depth, resilience, and attractiveness in the years ahead.